If you’re planning on renting a car for your next holiday, one might be wondering if you’ll have to buy rental car insurance. If you don’t have private auto insurance or are renting for a business, you’ll almost certainly need to get rental insurance.
What is Rental Car Insurance, and How Does It Work?
Rental car insurance is a sort of insurance that protects you financially against the dangers of driving a rented car. This is a sort of non-owners car insurance that protects drivers who are driving vehicles they don’t own or aren’t registered to. Rental car insurance may be available through your automobile insurance company; rental car coverage is normally not included in your normal plan except clearly mentioned. You might be able to get it via a rental car company’s purchase desk or from a firm like Bonzah.
Types of Rental Car Insurance
You might wish to look into some of the most prevalent types of rental car insurance.
1. Liability insurance: is a sort of coverage that pays out if you injure someone or damage someone else’s property in an accident. To drive legally in most states, you must have at least a specific level of liability insurance. If you have a personal auto insurance policy, you are likely already covered for both injury and property damage liability.
2. Collision coverage: is a type of auto insurance that covers damage to your vehicle — in this example, your rental automobile. You will most likely be held liable for any damage your rental automobile sustains while in your hands if you do not get collision insurance. Your auto insurance policy may cover any rental automobiles you use if you have collision coverage.
3. Comprehensive coverage: is a sort of auto insurance that reimburses the vehicle’s owner if the vehicle is wrecked in a way that is not caused by an accident. Theft, vandalism, and lightning damage are all instances of scenarios that come under this policy. This coverage, like collision coverage, is critical for rental car drivers since you could be held liable for any damage or theft that occurs while the car is in your control.
Things You Can Add To Your Rental Car Coverage in Your Automobile Policy
You may be able to attach additions to your insurance through the rental business in addition to the liability coverage that extends to your rental vehicle. You might come across the following forms of supplementary coverage:
- Collision or loss-damage waiver: Actually, a collision or loss-damage waiver isn’t insurance. It can, nevertheless, help you if you’re in an accident and your personal insurance policy doesn’t provide collision or comprehensive coverage. This waiver will cover any damage to the rental car that you cause while driving. If you were speeding or driving on dirt roads when the damage happened, collision and loss-damage waivers normally don’t apply.
- If you’re in an accident, personal accident insurance can help you pay for your medical claims as well as the medical bills of anyone else driving in your rental car with you. This may be redundant protection if you have health insurance or personal injury protection from your automobile insurance provider that covers rental cars.
- Personal items coverage compensates you if your belongings are taken from your rented vehicle. If one keeps his or her phone on the seat of the rental car and someone breaks the window and takes it, the personal effects coverage will assist the individual to cover the cost of a new phone up to the policy limit.
Exception for Rental Car Insurance
Your automobile insurance will, for the most part, protect you while driving a rented car. Rental automobile insurance is available with some credit cards. Every car insurance coverage, though, has constraints. Your auto insurance, for instance, will most likely only cover the usage of rental cars when you’re using them for personal reasons. This means that your personal auto insurance may not cover you if you’re on a business trip.
Before you hire a car, check with your insurance agent. The last thing you want is to assume you’re insured only to find out your insurance isn’t legitimate after an accident.
Before Renting a Car, Here’s What You Should Do
Check your current insurance policy before renting a car. To learn more about where each coverage applies, contact your auto insurer, credit card business, health insurance provider, and homeowners insurance, provider.
You may not need to acquire rental car insurance if you have personal auto insurance and supplemental insurance for medical incidents and personal belongings.
Coverage for a Rental Car (Primary or Secondary)
There are two types of rental automobile insurance: primary and secondary. When it comes to credit card perks, primary coverage is less typical. If you have one of the few credit cards that provide primary rental car coverage, you can avoid contacting your auto insurance and filing a claim if you’re in an accident. When it comes time to renew your auto insurance coverage, this can help you prevent an increase in your prices.
Secondary coverage is generally what credit card networks tend to offer. Secondary coverage only covers what your auto insurance coverage is not covering. Therefore, you usually need to put in a claim with your auto insurer first. Your auto insurer may increase your rates after being involved in an accident.